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US severely exposed if rates rise: Erskine Bowles
CNBC ^ | 02/03/2014 | Matthew Belvedere

Posted on 02/03/2014 7:57:47 AM PST by Rusty0604

Edited on 02/03/2014 9:19:23 AM PST by Admin Moderator. [history]

The United States spends about $230 billion a year in finance payments to creditors

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy
KEYWORDS: debt
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1 posted on 02/03/2014 7:57:47 AM PST by Rusty0604
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To: Rusty0604

Tell us something we don’t already know. Gee, what a precient observation. BTW, interest on the debt last year was almost 500billion and the jackass in the whitehouse wants to raise it much farther.


2 posted on 02/03/2014 8:00:15 AM PST by Mouton (The insurrection laws perpetuate what we have for a government now.)
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To: Rusty0604

Which is precisely why the Fed will have to continue to buy treasuries to keep interest rates low. We have painted ourselves into a corner.


3 posted on 02/03/2014 8:01:55 AM PST by fhayek
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To: fhayek

‘zackly.


4 posted on 02/03/2014 8:02:31 AM PST by Eric in the Ozarks ("Say Not the Struggle Naught Availeth.")
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To: Mouton

The Obama administration warned on Monday it could start defaulting on the government’s obligations “very soon” after hitting a limit on the national debt later this month.
Treasury Secretary Jack Lew said the federal government should hit the ceiling by the end of February unless Washington raises the nation’s limit on public borrowing.

The federal government would then burn through its remaining cash more quickly that it would at other times of the year because the Treasury will be issuing tax refund checks, Lew said.
http://www.cnbc.com/id/101359298


5 posted on 02/03/2014 8:02:53 AM PST by Rusty0604
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To: Rusty0604

Default, dear Brutus, is not in our stars, but in our future


6 posted on 02/03/2014 8:03:05 AM PST by ClearCase_guy (Anti-Complacency League! Baby!)
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To: Rusty0604

Gee... whenever we TEA Party types bring this up... we are wackobirds and wackadoodles for thinking that way.


7 posted on 02/03/2014 8:03:49 AM PST by LibLieSlayer (FROM MY COLD, DEAD HANDS! BETTER DEAD THAN RED!)
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To: Mouton

Simpson-Bowles is a very reasonable plan. I wish Republicans would support it.


8 posted on 02/03/2014 8:03:50 AM PST by babble-on
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To: LibLieSlayer

Yea, this guy is a Democrat so it’s OK.


9 posted on 02/03/2014 8:05:31 AM PST by Rusty0604
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To: Rusty0604

That’s why packing the Fed moved up on the Democrap priority list.


10 posted on 02/03/2014 8:05:53 AM PST by Buckeye McFrog
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To: babble-on

Gee this was brought up when Perot ran in the nineties. Glad you can now see it.


11 posted on 02/03/2014 8:05:58 AM PST by jimpick
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To: Rusty0604

Bowles - It’s the coolie labor rates and pollution, stupid.


12 posted on 02/03/2014 8:06:36 AM PST by ex-snook (God is Love)
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To: Rusty0604

What’s 5% of $17,000,000,000,000?

Don’t need a PhD in economics to know this is a problem...


13 posted on 02/03/2014 8:07:49 AM PST by LucianOfSamasota (Tanstaafl - its not just for breakfast anymore...)
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To: Rusty0604
The argument has nothing to do with responsible people who pay their own bills and prepare for futre financial obligations. These low interest rates on savings have made it impossible to do so. What's happened is the little guy has subsidized reckless government debt and global economic practicies.

So what do I care if the global economy collapses and the Federal Reserve doesn't get money from bogus loans back? BRING IT ON !!

14 posted on 02/03/2014 8:10:02 AM PST by grania
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To: Rusty0604

because the Treasury will be issuing tax refund checks, Lew said.

Along with hefty EICs, a completely misapplied federal welfare system.


15 posted on 02/03/2014 8:10:40 AM PST by Mouton (The insurrection laws perpetuate what we have for a government now.)
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To: babble-on

Simpson-Bowles doesn’t address Medicare/Medicaid, the biggest drivers of our debt.


16 posted on 02/03/2014 8:11:21 AM PST by kabar
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To: Mouton

Massive debt is going to crush us at some point. It’s a ticking timebomb.

Politicians of both parties use debt to buy votes and will not stop spending until they are forced to do so by a debt service crisis. We are screwed.


17 posted on 02/03/2014 8:13:00 AM PST by Starboard
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To: LucianOfSamasota

And the debt will continue to increase by $600 billion or more per year, especially since we just suspended sequestration for two years with the Ryan-Murray deal.


18 posted on 02/03/2014 8:13:25 AM PST by kabar
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To: LucianOfSamasota

$17 trillion grossly understates the real amount of debt (by over $100 trillion) when the unfunded liabilities are included. See bottom line in link:

http://www.usdebtclock.org/


19 posted on 02/03/2014 8:19:43 AM PST by Starboard
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To: kabar

Sequestration was just another political hoax on a gullible public that deserves the government it votes for.


20 posted on 02/03/2014 8:21:40 AM PST by Starboard
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